Is Exeter Still a Hotspot for First-Time Buyers in 2025?

Exeter continues to be a sought-after location for first-time buyers in 2025. Despite challenges in the housing market, the city’s combination of affordability, strong demand, and improving financial conditions makes it an attractive option for new homeowners.

Rising Interest from First-Time Buyers

In the first quarter of 2024, nearly 46% of new-build enquiries in Exeter came from first-time buyers, up from 31% in Q1 2023. This surge indicates growing confidence among first-time buyers in the local property market.

Property Prices: A Mixed Picture

The average house price in Exeter stood at £279,000 in June 2025, slightly down from £283,000 in June 2024. However, the average price paid by first-time buyers was £240,000, a 1.9% decrease from the previous year. While overall prices have seen a modest decline, first-time buyers are still finding opportunities within their budgets.

Mortgage Affordability Improving

Recent reductions in interest rates have lowered monthly mortgage payments, making homeownership more accessible for first-time buyers. This improvement in affordability is expected to inject fresh energy into the market, supporting a healthy property chain from the bottom up.

Increased Housing Stock

The number of homes available in Exeter has increased slightly over the past year, from 1,117 in January 2024 to 1,396 in January 2025. This rise in inventory provides more options for first-time buyers to choose from, potentially easing the pressure on the market.

Local Market Dynamics

Exeter’s property market is currently balanced, with a “Sold STC to total stock” ratio of 38%. This indicates that negotiations are nuanced and both buyers and sellers need to be proactive.

Potential Tax Reforms

The UK government is considering replacing stamp duty with a new property sales tax targeting homes sold for over £500,000. While this would affect a minority of transactions, it could impact high-value areas like Exeter. Additionally, discussions are underway to replace council tax with a local property levy based on property value.

Final Thoughts

Exeter remains a strong contender for first-time buyers in 2025. With improving affordability, increased housing stock, and a balanced market, prospective homeowners have a favorable environment to enter the property market. Staying informed about potential tax reforms and market trends is essential for making well-informed decisions.